What will happen if government spending increases by $100 billion is:
Real output will increase by a maximum of $400 billion.
<h3>
Government spending</h3>
Using this formula
Multiplier=1/(1-MPC)
Where:
MPC=Marginal propensity to consume =0.75
Let plug in the formula
Multiplier=1/(1-0.75)
Multiplier=1/0.25
Multiplier=4
Increase in GDP= Government spending ×4
Increase in GDP=$400
Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.
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Answer:
it is too long but also I like to choice Step 1
Commission simply means a form of variable-pay remuneration for services that are rendered or products sold.
<h3>What is commission?</h3>
Your information is incomplete. Therefore, an overview will be given. A commission is a payment that an employee makes based on a sale.
For example, when an employee sells a product for $500 and they get a 10% commission on all sales, then the employee will earn $50 on that sale.
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Answer:
a. As per the situation sales exceed production absorption costing income from operations is lesser than variable costing income from operations.
b. $776,160
Explanation:
a. As per the situation sales exceed production absorption costing income from operations is lesser than variable costing income from operations
b. Given that
Beginning inventory = 52,800
Fixed manufacturing costs = $14.70 per unit
Total Beginning inventory = Beginning inventory × Fixed manufacturing costs
= 52,800 × $14.70 per unit
= $776,160
Answer:
Correct option is B.
<u> The weight of debt for WACC purposes is 23.08%</u>
Explanation:
Amount of debt = 2 million x 0.90
= 1.80 million
Amount of equity = 2 million x 3
= 6 million
Weight of debt = amount of debt/ (amount of debt + amount of equity)
= 1.80 million / ( 6 million + 1.80 million)
=23.08%